If you are planning to open a fixed deposit (FD) with a bank, it is important to first compare the interest rates offered by different banks. Typically, banks offer a 50 basis point higher interest rate to senior citizens.
It is vital to note that the market is witnessing a declining interest rate cycle after the Reserve Bank of India (RBI) slashed the repo rate by 100 basis points in the past three monetary policy committee (MPC) meetings. In today’s policy announcement, repo rates were kept the same.
Here we list out the interest rates offered by the top eight lenders in India to regular and senior citizens on their 3-year term deposits.
FD interest rates on three-year term deposits
I. HDFC Bank: The largest private sector bank offers 6.45 percent to regular citizens and 6.95 percent to senior citizens on 3-year fixed deposits (FD).
II. ICICI Bank: This private sector bank offers 6.6 percent to regular citizens and 7.10 percent to senior citizens on three-year term deposits.
III. Kotak mahindra bank: This private bank offers 6.4 percent to regular citizens and 6.9 percent to senior citizens on three-year fixed deposits (FDs). These rates came into force on June 18.
IV. Federal Bank: This private sector bank, since July 17, has been offering 6.6 percent on three-year fixed deposits to regular citizens and 7.1 percent to senior citizens.
V. Bank of Baroda (BOB): This government sector bank offers 6.5 percent and 7 percent interest to regular and senior citizens, respectively, on three year fixed deposits.
VI. State Bank of India (SBI): This state lender offers 6.30 percent to regular citizens and 6.80 percent to senior citizens on 3-year deposits. These interest rates came into effect on July 15.
VII. Union Bank of India: This state lender offers 6.60 percent to regular citizens and 7.10 percent to senior citizens on three-year deposits, as per the latest rates, which came into effect on July 7, 2025.
VIII. Punjab National Bank (PNB): This government sector bank offers 6.40 percent interest to regular citizens and 6.90 percent to senior citizens.
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